City Hotel Limited (CITY) is officially closing the auction of 21,50,418 units of unsold promoter, employee, and ordinary lock-in shares today, 30th Kartik 2082, marking the final day for interested bidders to participate. The auction, which opened on 23rd Kartik, follows the company’s earlier 1:0.80 rights offering, where a significant portion of shares remained unsubscribed.
Over 19.5 Lakh Right Shares Remained Unclaimed
Out of the total rights issued, 1,12,41,582 units (85.22%) were allotted to eligible shareholders. However, 14.78% of the shares, amounting to 19,50,418 units, went unclaimed. These unclaimed right shares, primarily belonging to promoter shareholders and employees, have now been placed on auction.
In addition to promoter shares under lock-in, the auction includes:
- 19,80,999 units of promoter right shares (locked until Jestha 04, 2083)
- 6,000 units of employee shares (also locked until Jestha 04, 2083)
- 1,54,419 units held by public shareholder groups
All of these shares are being made available for competitive bidding as part of today’s closing auction.
Background on the Rights Issue
City Hotel Limited had issued its 1:0.80 ratio rights offering between 23rd Bhadra and 26th Ashwin 2082. Despite the sizable participation from existing shareholders, the unclaimed portion became substantial, prompting the follow-up auction to ensure full subscription of the offering.
Auction Details and Eligibility
Prabhu Capital Limited is serving as the issue manager for the auction. Key terms include:
- Minimum bid rate: Rs. 100 per share
- Minimum bid quantity (for ordinary shares): 100 units
- Bidders may apply for the entire available share quantity, but must comply with securities regulations on maximum allotment limits per entity.
- Individuals, institutions, and companies are all permitted to take part in the auction.
With today marking the final deadline, the auction represents a significant opportunity for investors seeking to acquire CITY shares at competitive prices while helping the company complete its right share issuance process. City Hotel Limited expects the conclusion of the auction to further strengthen its capital structure and support future growth initiatives.
